ROAS & Digital Marketing Calculator
Calculate your Return on Ad Spend and Campaign Profitability
ROAS (Ratio):
0.00:1
ROAS (Percentage):
0%
Net Profit:
$0.00
ROI (Return on Investment):
0%
What is ROAS?
Return on Ad Spend (ROAS) is a key marketing metric that measures the amount of revenue your business earns for every dollar it spends on advertising. Unlike general ROI, ROAS focuses specifically on the effectiveness of a particular campaign, ad group, or keyword.
ROAS = Total Revenue / Total Ad Spend
Understanding the Results
To interpret your ROAS, consider these benchmarks:
- 1:1 ROAS: You are breaking even on ad spend (but likely losing money after product costs and overhead).
- 4:1 ROAS: Generally considered a successful benchmark for e-commerce businesses.
- 10:1 ROAS: Exceptional performance, indicating a highly profitable campaign.
ROAS vs. ROI: What's the difference?
While ROAS measures gross revenue generated per dollar spent on ads, ROI (Return on Investment) accounts for all expenses, including the cost of goods sold (COGS), shipping, and labor. ROAS tells you if your ads are working; ROI tells you if your business is making money.
Practical Example
If you spend $2,000 on Google Ads and generate $10,000 in sales:
- ROAS: $10,000 / $2,000 = 5.0 (or 500%)
- Meaning: For every $1 you spent, you earned $5 in revenue.